Iqama Issuance and Renewal Fees 2024: Everything You Need to Know

For expatriates residing in Saudi Arabia, understanding the fees and procedure for Iqama issuance and renewal is beneficial, even though it is primarily the responsibility of your employer. This guide provides a comprehensive overview of the Iqama renewal process, detailing necessary fees, insurance requirements, and steps to ensure your stay in Saudi Arabia is uninterrupted and legally compliant.

MOI Iqama Issuance and Renewal Fee

The annual cost for renewing your Iqama is SAR 650, which can be paid in quarterly installments. The breakdown is as follows:

DurationFee (SAR)
3 Months163
6 Months325
9 Months488
12 Months650

Work Permit Fee (Maktab Amal Fee) or Levy

Expatriate employees in Saudi Arabia are subject to a monthly work permit fee of SAR 800, payable at a minimum every three months. The fees are detailed as follows:

DurationFee (SAR)
3 Months2,400
6 Months4,800
9 Months7,200
12 Months9,600

Also Read: How to Check Medical Status for First Iqama

Expat Dependent Fee

For those sponsoring family members, a dependent fee of SAR 400 per month per dependent is required:

DurationFee (SAR)
3 Months1,200
6 Months2,400
9 Months3,600
12 Months4,800

Important Update: Saudi Arabia Reviews Expat Dependent Fee: Finance Minister

Health Insurance Fee

Valid health insurance is a mandatory requirement for issuing and renewing an Iqama, covering you and your family members for the duration of the Iqama. Costs vary based on coverage, with individual policies typically under SAR 1000. While employers often provide health insurance, there may be cases where you need to personally cover your family members, depending on your employment agreement. Discussing and understanding these details with your employer is essential to meet all insurance requirements for your Iqama.

Changes in Work Permit Fees for Domestic Workers

The work permit levy has been extended to certain domestic workers, applicable from the fifth domestic worker for Saudi employers and the third for foreign employers.

Levy Exemptions for Small Businesses

Saudi Arabia has extended the exemption from work permit fees for an additional three years, now expiring in March 2027. This extension applies to businesses employing nine or fewer people, including the Saudi owner. Detailed exemptions include:

  • Small firms with nine or fewer employees registered with the General Organization for Social Insurance (GOSI) can exempt two foreign employees from the levy.
  • If an establishment includes at least one Saudi citizen besides the employer, with both registered with GOSI, it can exempt up to four expatriate employees from the levy.
  • An establishment can exempt a maximum of four foreign workers from the levy, regardless of its size.

Step-by-Step Guide to the Iqama Renewal Process

To renew your Iqama, ensure you:

  1. Pay the MOI Iqama fee.
  2. Clear any work permit fees.
  3. Settle outstanding traffic fines.
  4. Have a valid health insurance policy.
  5. Pay the dependent fee (if applicable).

Your employer can renew your Iqama through the Absher or Muqeem online portals.

Common Questions and Answers

1. What is an iqama in Saudi Arabia?

An iqama is a residence permit issued to expatriates who arrive in Saudi Arabia with an employment visa. It serves as a national identification card and a proof of legal residency in the country. Read this detailed guide on Iqama.

2. How is an iqama issued for expatriates in Saudi Arabia?

An expatriate’s employer submits an application to the Ministry of Human Resources and Social Development (MHRSD) and the General Directorate of Passports (Jawazat), along with the necessary documents. Upon payment of the required fees and completion of the medical test, the iqama is then issued.

3. How often does an iqama need to be renewed?

An iqama must be renewed periodically. In contrast to the previous regulation that allowed only annual renewals, it is now possible to renew an iqama on a quarterly basis as well.

4. What are the general fees for iqama renewal?

The fee for iqama renewal is SAR 650 for the iqama itself, plus an additional work permit fee that varies depending on the company’s size and the expatriate’s profession, which could range from SAR 7,200 to SAR 9,600 annually.

5. Are there any penalties for late iqama renewal?

Yes, there are penalties for late iqama renewal. The first-time penalty may be a fine of SAR 500, which can increase to SAR 1,000 for a second offense, and may lead to deportation on the third offense.

6. What is the dependent fee for iqama holders?

The dependent fee for iqama holders is SAR 400 per month for each dependent, and it is payable quarterly or annually. Paying this fee is mandatory for the renewal of the sponsor’s iqama if they have dependents under their sponsorship.

7. How can one pay the iqama renewal fees?

Iqama renewal fees can be paid through the online banking systems of Saudi Arabian banks or via ATMs. Here is a detailed guide on how to pay iqama fees.

8. Is medical insurance required for iqama renewal?

Yes, valid medical insurance is mandatory for the renewal of an iqama. The insurance must be valid for the entire duration of the new iqama period.

9. Can iqama renewal be done online?

es, iqama renewal can be processed online through the employer’s Absher account. However, all required fees must be paid, and a valid insurance policy must be in place before the renewal process can be completed.

10. What documents are required for iqama renewal?

Since iqama renewal is conducted online, apart from paying the fees and maintaining a valid insurance policy, no specific documentation is generally required for renewing an iqama. However, there may be exceptions for certain jobs or nationalities.

11. What is a work permit fee in Saudi Arabia?

The work permit fee is a charge paid to the Saudi government for the issuance and renewal of a work permit, which is required for the iqama renewal. The fee varies based on several factors, including the company’s size and the expatriate’s occupation.

12. How does the Nitaqat program affect work permit fees?

The Nitaqat program classifies companies based on their Saudization level, which can affect work permit fees. Companies in higher compliance categories may enjoy lower fees or additional benefits, while those in lower categories may face higher fees. Here is how to check your company’s Nitaqat color status.

13. Are there any exemptions from dependent fees?

There are very limited exemptions from dependent fees, primarily for small businesses and domestic workers.

14. How can one check the status of iqama renewal?

The status of iqama renewal can be checked online through the Absher platform, where you can log in and view the iqama expiry date.

Conclusion

In summary, although your employer is responsible for the Iqama issuance and renewal process under Saudi law, being informed about the associated fees and procedures is crucial for a seamless expatriate experience in Saudi Arabia. Knowing these details prepares you well and ensures your Iqama remains valid without any issues.

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